Vattenfall Plans U.K. Wind Farm That May Need $7.8 Billion

  • Norfolk Vanguard offshore plant would be completed in 2020s
  • Wind turbines would produce 1.8 gigawatts of electricity

Vattenfall AB, the Nordic region’s biggest utility, started planning work on a 1.8 gigawatt offshore wind farm due to be completed in the 2020s, which could cost as much as $7.8 billion.

The Norfolk Vanguard wind farm would be located 47 kilometers (29 miles) off the coast of Winterton Ness in the east England, according to a statement from the company on Tuesday. Vattenfall plans to apply for planning permission in 2018 with a view to gaining consent in late 2019.

The wind farm would cost about 5 billion to 5.5 billion pounds ($7.09 billion to $7.79 billion) if financing is secured in 2022 or 2023, according to estimates by Bloomberg New Energy Finance that are not adjusted for inflation. A spokesman for the utility said it was too early to give details on the investment needed for the project or how much debt and equity it would require for construction.

Last week, The Crown Estate, which leases the seabed to offshore wind farms, agreed to split its East Anglia Offshore Wind Zone between Vattenfall and Scottish Power Renewables Ltd. The companies had been developing the zone together since 2010 and will now take their projects forward separately.

Vattenfall said it plans to develop a second 1.8 gigawatt offshore wind farm in the area, called Norfolk Boreas, starting in 2017. The company’s projects are expected to deliver power at a levelized cost of less than 100 pounds per megawatt hour in order to receive subsidies from the government.

Last month Scottish Power said it will move forward with the 714-megawatt East Anglia One offshore wind farm, which will be constructed in the northern part of the former zone.

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